Thailand
Thailand: Consumers cut spending, wait for sales
Thai consumers have cut back their spending this year amid rising inflation, but more than half plan to make digital purchases during the sales season, while online shopping across Southeast Asia declined from last year, a recent study revealed.
The “Inflation & Shopping in the Digital Age” survey, conducted in November, found inflation affected the spending of more than 9,000 consumers in Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines this year.
While 90% of respondents reduced their expenses over the last six months, higher-income shoppers did not change their shopping behaviour because they were less affected by inflation, according to the study, which was jointly prepared by global research companies Blackbox Research and ADNA.
“This study quantitatively validates what many of us feared. Across Southeast Asia, inflation has impacted most of the population, with only the affluent spared,” said Nishant Kaushal, global head of data, strategy and solutions at ADNA.
“The populace across the six countries is taking active steps to balance budgets by cutting down on discretionary spending and hunting for savings on necessities.”
Except in Singapore where digital spending spiked by 16% this year, the regional e-commerce market dropped by 9% from 2021 as more consumers waited for the sales season to shop online, the study found.
Thai consumers adopted a similar approach, with 55% indicating they were somewhat likely to make digital purchases during the sales season, and 9% saying very likely.
The highest number of respondents who were very likely to hunt for deals were from Singapore (30%), while the largest tally indicating they were somewhat likely to hunt for deals were 63% from Indonesia.
Despite a decline in regional digital purchases this year, the poll indicated 45% of Thai respondents still ordered from online platforms, whereas only 18% purchased at major retailers.
Three methods respondents from Thailand used to curb their expenses included cutting back on dining out (29%), buying items at discount rates (25%) and eating meals at home (23%). Some 11% of Thai respondents reported purchasing cheaper brands.
As inflation soared throughout this year, the majority of Thai consumers found general price rises across all household spending to be the most significant financial challenge, followed by the surge in interest rates and educational costs.
Mr Kaushal suggested retailers, e-commerce platforms and marketers provide solutions and demonstrate empathy to consumers.
“Hard-sell tactics and fear-based marketing messages only add to the stress households are facing,” he said.
Source: https://www.bangkokpost.com/business/2459185/consumers-cut-spending-wait-for-sales